The eNaira is Africa’s first digital currency.

On Monday, Nigeria’s Central Bank launched a digital currency to be used alongside its physical currency. The Central Bank of Nigeria officially announced the introduction of the eNaira in a press release.

A monetary authority A type of cryptocurrency controlled by a country’s central bank is known as digital currency. According to the IMF, more than 100 countries, including the United States and China, are investigating the development of a CBDC. The virtual currency, known as the eNaira, is backed and issued by the Central Bank of Nigeria, the country’s apex bank (CBN). Nigeria, like most governments, is introducing virtual currency because it is more cost-effective than physical cash, allows the unbanked to have easier access to money, and can help limit illicit activities.

According to multiple media reports, the CBN chose Barbados-based Bitt Inc in August to develop and launch the digital currency. The firm has a track record: it worked with the Eastern Caribbean Currency Union (ECCU) to design and launch DCash, the digital currency used by Antigua and Barbuda, Grenada, Saint Kitts and Nevis, and Saint Lucia — four of the five countries that have fully launched their own CBDCs.

On September 27, the Central Bank of Nigeria (CBN) launched the eNaira website, which provides detailed information on how Nigerians can access and use the virtual currency.

Nigerians must first download the eNaira mobile application from the Apple Store or Google Play Store. They can also access the service by scanning a QR code on the website.

After registering, users must create a wallet called the Speed Wallet in order to store, send, and receive money. Several tiers of wallets are available on the platform, catering to users with and without bank accounts, as well as users with varying levels of identification.

The website lists four main eNaira features: a unified payment system that allows customers to transfer money from their eNaira wallet; a bank account management feature that allows users to check balances and transaction history; a contactless payment service that allows users to make in-store payments by scanning QR codes; and P2P payments, in which users send money to one another using a linked bank account or card. This is a positive development by Nigeria, but there is concern about how they could be used by governments with a history of surveilling or attempting to surveil their citizens. This will be Nigeria’s next challenge.